Event report

Monetary & Exchange rates policies within the East Africa & Indian Ocean.

Coffee meeting hosted at the French Chamber in partnership with the Regional Economic Service of the French Embassy.

On Tuesday, 24th of January, we hosted a presentation around monetary exchange rate policies in East Africa the Indian Ocean area.

In this member-only event, we had the pleasure of having Mrs. Héloise Tournoux, Regional Financial Counsellor, and Mrs. Justine Melot, Development & Financial Intern, for an insightful presentation on the impacts of the rise in inflation in EAIO countries, following the Covid-19 crisis and the war in Ukraine.

They also discussed ForEx trends and shared country specific analyses for Kenya, Tanzania, Uganda, Rwanda & Ethiopia. The French Regional Economic Department has released a monthly import on monetary and exchange rate policies in the EAIO. This report is available online (full report in French –abstract in English).

After an average inflation rate of 12.4% between 2010 and 2019, the rise in inflation in 2022 in all East Africa & Indian Ocean countries, following the Covid-19 crisis and the war in Ukraine, has tested the capacity of countries in the region to respond to external shocks. Rising international prices for food, energy and fertilizers have resulted in imported inflation, which monetary policy has little control over. Depending on the level of development of the country, the domestic market and the financial sector, and on the exchange rate regime, the central banks in the region employed different strategies to counter the inflation. Transmission of monetary policies to the real economy remains however constrained by structural factors and limited access to forex reserves.

Members of the French Chamber can also access the presentation shared during the event on their member space.

Many thanks to all the members who joined us for this event and to the Regional Economic Service of the French Embassy.

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